News

European Council: Economic and Financial Affairs Council, 10/10/2017

Main results

The Council adopted a directive introducing a new system for resolving double taxation disputes between member states. The directive strengthens the mechanisms used to resolve disputes between member states that arise from the interpretation of agreements on the elimination of double taxation.

“This new system is a big improvement. It will encourage investment by creating a more favourable tax environment and reducing costs for businesses”, said Toomas Tõniste, minister for finance of Estonia, which currently holds the Council presidency.

The Council adopted conclusions setting out the EU position on climate change ahead of the next conference of the parties to the UN climate change convention, which will take place in Bonn in November 2017. The conclusions will serve as a mandate for the EU’s negotiators on the financing aspects of climate change. The Bonn conference is part of the follow-up to the global agreement reached in Paris in December 2015.

The EU and its member states have committed to increasing their public finance contributions over the next few years. The conclusions call for the participation of a broader range of contributors, urging other developed countries to meet their commitments and to mobilise private finance.

Ministers took stock of the 2017 ‘European Semester’ policy monitoring process with a view to making the exercise smoother and more effective. They discussed preparations for G20 and IMF meetings to be held in Washington in mid-October. And the Commission presented a package of proposals to reform the EU’s VAT system, as well as its suggested policy approach to the taxation of the digital economy.